Willingness to Pay for Bat-Friendly Tequila

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Authors

Kalsman, Hannah

Issue Date

5/1/2020

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Thesis

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en_US

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Abstract

The tequila industry has grown 158% since 2002 which the tequila industry has been satisfying with harmful farming practices. These techniques have put tequila producers at risk due to a lack of natural pollination. Since this pollination is provided by bats, the Bat-Friendly Tequila Project launched a special release of 300,000 bottles of bat-friendly tequila. This study sought to discover a willingness to pay for bat-friendly tequila (BFT) by issuing a stated-preference survey to 215 people within the United States to measure if information had any impact on their willingness to participate in the BFT market. A discrete choice model was used to compare BFT against a consumer's preferred brand with price and quality held constant. It was discovered that access to information, a person's environmental concern, and the amount spent on a bottle of tequila were significant in influencing an individual's willingness to pay for BFT using OLS estimates.

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